away in a leaf. oh, boy, the cousin of the best selling hybrid car, the toyota prius plug-in. only 6,000 prius solin the first three quarters, leaving us with the number one electric car in the u.s., yeah, you got it, the always controversial chevy volt which does not make this noise. get this, the best selling car has just 13,000 sales. that's the best selling one. that's the one that does really, really good. the car is constantly a disappoint dollars. that is it for nt "the willis report." thanyou for joining us and i wish you and your families all have a very, very merry christmas. have a greatight.

>> hi, everyone, happy new year, i'm diane macedo joining you live from fox business headquarters in new york where we continue to follow the breaking news in washington. we're currently waiting for the house of representatives to vote on a fiscal cliff deal that the senate passed early this morn and house members have just begun voting on series of other measures as republicans determine whether they have enough support to hand the budget bill and send it back to the senate. the senate by the way is done for the day and isn't expected to come back into session until noon tomorrow. rich edson live on capitol hill. rich, interesting we got word almost exactly the same time the house was considering this proposal to send an amended bill back to the senate and senate was calling it quits for the night and coming back tomorrow afternoon. are they messing with us? do they want to get a deal done? because it doesn't seem it like now. >> i'm beginning to think so they are directly messing with us. if you see what is happening now, unrelated votes on

house floor they get to lawmakers in one spot. making it certain for republican leadership to find out if they have 218 votes among republicans they need to change this bill. they might add $300 billion in spending cuts to this proposal. the problem that republicans have with this, there really aren't enough spending cuts in here for them. so there is a move among a number about republicans to add those spending cuts. so there are basically two choices now. gop leadership aide confirms to fox business you can either have this amendment, attach those spending cuts to the bill the senate passed last night, or, if they don't have the votes to do that, they would then just vote on the bill that the senate passed last evening. the first option, amending that bill, adding those spending cuts creates a problem because senate democrats say they won't consider that. they say they will basically going back on the deal we had between the senate minority leader mitch mcconnell, top republican in the senate and vice president joe biden. so at this point republicans

are weighing whether or not they want to try to get the senate to consider this which the senate seas they're not going to do? or if they want to vote on the bill that passed the senate last night, attempt to pass it. if that happens, send it to the president and we can start the next debate which is the debt ceiling. diane? >> is there any sense of timing here? how long does it take to find out if they have enough support to do this? how long to vote on if they do and how long to get up or down vote on the senate bill if they don't? >> this will take hours. it take hours to figure out how many votes you have. they just unveiled this strategy in the last hour. we broke it here on fox business. right after the republican leadership presented it to the members of the republican party. so they haven't had all that long to consider it. so right now they're at the stage where they're talking to their members, okay, if we put this on the floor would you vote for it? but there are republicans who are saying they know full well if they vote for the spending cuts while they prefer those spending cuts

to be attached to this proposal they understand they're probably killing the deal that the vice president and the senate minority leader negotiated and probably means we'll have this fiscal cliff impasse all the way into the next congress which convenes on january 3rd. >> rich, we heard the president say yesterday and many times before he wants to tackle the deficit in a balanced manner. so why not include the spending cuts in here, especially knowing how much of a sticking point that is for republicans? what do the democrats say about that. >> that is what republicans are saying, if you want a balanced approach to deficit and debt, then you should include spending cuts in here. democrats are sayingings, look this was deal negotiated by the top republican in the senate and the vice president. it deals with mostly just the tax portion unemployment insurance, some other proposals, some other end of the year spending that congress typically does and we will debate spending long term entitlements that in the next congress, in the next year. but republicans say we always say next year, next time and democrats don't

want to get serious on spending reform, don't want to be serious on entitlement reform or tax refor. republicans feel like they constantly kicked the can and this is their best way to try to extract those cuts. other pub republicans say take the tax deal while you can. tax rates railroad increased up and down the, basically every tax bracket revoted to the clinton era rates. they have all gone up. at this point vote for the tax cut, get out of here, come back on january 3rd and use the debt ceiling to extract cuts from democrats that try to the if us to some sort of fiscal sanity here. >> then two months from now we deal with the spending cuts as well as the debt ceiling. they're at least keeping us, you know, employed here, rich. they're giving us plenty of things it talk about. >> yes. 2013 will seem to be a busy year in washington as the last five years have been. >> rich edson live from d.c. always great talking to you.

>> thanks, diane. >> that is the latest everybody on the fiscal cliff negotiations in washington. we'll be back at top of the hour or as usual break in at any time if we continue to get news. don't forget fox business will be live tomorrow morning a 5:00 a.m. for special coverage as markets react to all of this. i'm diane macedo. here is your regular programing. >> this has been a fox business special report. we now return you to your regularly scheduled programing. lou: 20 f-16s will be shipped to egypt at beginning of the month. this has a number of president's critics absolutely furious. your thoughts on that level of engagement? is it correct or really high-stakes gambling? >> bell i think that stresses the point, seems to me, we need to maintain a good, close relationship, with the egyptian military. recall in past years, a couple of decade ago when we became disenchanted with the

government and military of pakistan we cut off military assistance to the pakistani military and that led to a very negative consequences. so while some of these choices are very difficult, i'm inclined in the direction of greater, rather than lesser engagement. i don't think there is any point in just wiping our hands of these situations. lou: and, you talked about declining powers. does the obama administration's intelligence council in a new report that i just referred to, talks abouted day which the united states will no longer be a superpower but so-called first among equals. they project the date is somewhere around 2030. your thoughts and reckoning on the date and whether or not you agree with that, if you will, not decline, ascension of other powers? >> right. i certainly think that since the financial crisis back in

2007 and 2008, there has been a tendency to write us down, if you will. you think many of those assessments have been unduly pessimistic. i think even down right wrong at times. we're still the most powerful economy in the world. there is still have most powerful military. demographic i canly we're quite a healthy nation. we are the third most populous nation in the world and we will be even out to 2050. so the notion that somehow we're going to be eclipsed from the scene, i think is completely wrong. there is some truth to the statement that the economic and demographic center of gravity in the world is shifting towards asia. but it is shifting towards asia away from europe if you will. and not away from the united states. and i think that that argues for the very policy that the administration has adopted which is, this pivot toward asia, cultivating those

relationships out there, being mindful of the trade and investment opportunities with the asia-pacific region and we're doing that and i think that's the right thing to do. lou: john negative point tee, -- john negroponte, thanks for being here. >> thank you, lou. lou: protests in key returning violent today. president mohammed morsi's dictatorship is under threat. at least 100,000 egyptians broke through police lines and iron gates to reach the presidential palace before they were forced back by riot police with batons and tear gas. the demonstrations signaling momentum for the opposition which brought out at least 200,000 protesters last week. that rivals the levels of protest back in the so-called arab spring, february of 2011 when president hosni mubarak was ousted. well joining us now, colonel oliver north, fox news

military analyst, host of war stories. author of a terrific collection of stories, "new york times" best-seller, heroes proved. colonel, thanks for being with us. congratulations on the new book. >> sure. lou: i want to get to that in a moment. get your reaction what we're watching take place in tahrir square again at the presidential palace in egypt. >> here's the good news. the good news is there is 100,000 people left in egypt who want to protest a dictatorship of sharia. that is what we'll see with the muslim brotherhood backing morsi and his regime and his attempted dictatorship. number two it will get crushed. the bad news is they will suppress this rebellion. they will suppress it with the help of police and muslim brotherhood thugs that are out there trying to make sure at the end of the day the christian movement that used to exist, coptic christian church is no longer a force to be reckoned with.

secular muslims no longer have a role to play in this government. ultimately that redowns to our disadvantage because we're helping to fund this government and of course to our only real ally in that part of the world, israel. lou: the reason we continue to fund this government, to, to continue the policies of which egypt is simply a part, libya as well, the distance from which we have remained from events in syria, without a clear-cut policy, what are your thoughts? >> well, the syrian situation has now become much more serious simply because we now have evidence that the assad regime is moving the precursors and chemical agents to places we may not be able to deal with. nato took a look at it today, lou and said nato will do something about it. as you and i donate toe is toothless to do anything about it without the united states. and it could take upwards of above 50,000 troops to secure those chemical

munitions, weapons of mass destruction that threaten not only the people inside syria but also the neighborhood to include turkey. thus the need for those, patriot missiles coming over. lou: right. are you surprised that we're sending patriot missiles, defense systems to, to the turks? >> no. in fact this has been hanging fire in brussels now for some months. the turks have always wanted to make sure they had some means of protecting themselves not simply from rockets coming in from syria but they want to protect themselves from the iranians are building with the help of course of the north koreans. lou: we could talk forever about turkey and the relationship that is emerging there but i want to talk here as we wrap up i want to talk about this new book, oliver north's "heroes proved". set in the future which you mentioned issues that, well, frankly are taking place today. >> 20 years from now and i

did not, when i sat down to write it a year and a half ago, lou, have any idea terror attack that kills americans would be lied about by an administration or israel would face the ex-sis stengs threat it does today. they are in this book and hopefully a brighter future for america when we realize what is happening, second amendment being denied by the united nations all things this administration are doing all in this book. by the way, servicemembers, those who are serving overseas, soldiers airmen, guardsman, marines buying the book, want to get a signed copy, oliver north.com. lou: go to loudobbs.com to get a link to oliver north.com. that will work as well. president obama's re-election reigniting the debate illegal immigration. would a republican shift on illegal immigration bring hispanic voters under the republican banner?

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lou: republicans facing increasing calls for immigration reform following the president's reelection in part of that victory on the part of the president and in the minds of many due entirely toan the suppt of the hispanic voter. exit polls show since a 5% of voters believe most illegalhmost immigrants working in this country should be offered a chance to apply for legal status. 28% say they should be deported. joining us, manhattan institute fellow, heather mcdonald. great to have you with us. >> thank you, lou. lou: your judgment as a matter of policy. what do you think is the appropriate way for publicon policy on the issue of illegal immigration?>>

>> i would like to move ourm immigration system toward the skill face qualifications that i you come and not because you have a family member alreadybu here but because you have skills of the american economy needs and the language. with regard to legal immigration, think the rule ofn law is remaining the best way oe making sure that people don't come into the country illegally. the risk of an amnesty that is basically all that we are talking about unfortunately is amnesty. every amnesty in the past weather in europe or in then united states has had the effect of attracting more people in the country illegally in the hopes of a future amnesty. lou: years ago i started talking about a rational, humane immigration policy that would take intocy account all of the concerns about displacement of those who were in this country

illegally, a d process make a determination of how work permits and legal status occurred. that is not enough.th the activist groups in this country t insist upon one thing, it is markable demand in my eyes, they insist upon amnesty and this president is insisting upon amnesty. what is your reaction? >> what i worry about most is not amnesty, but incredibly successful campaign toma stigmatize any immigration enforcementti whatsoever.ha when you have opposition across the country to a program called secure communities which says if you have committed a crime and you enter a jail, the jailsh authorities should notify the federal immigrationh authorities to your presence, that is now viewed as unfair to legal immigrants, so we can't even penalize crimils. that means even if we say we

will give nesty to everybody here and from this day forward we will start enforcing laws, wr won't.ng l lou: politically for republicans right now and the tempo and the tone of the conversation issurp rising, republicans are looking at theo numbers and they're saying despite the fact they didn't even turn out the members they have, this was the lowest turnou in almost 20 years. it is striking, now they say they have got to create diversity.u we will take up the issue of diversity later in the broadcast, but what is your reaction?a should they do that? is there a change i in the attitude of the republican party? >> first of all diversity" is our ridiculous. the best person should me

forward regardless.. if republicans believe in amnesty, they should enact amnesty. the hope that this will deliver significant numbers of current democrat hispanics the republican party i think isis naive because the main reason hispanic support the democratic party is economic policies, not immigration. you have 62% of likely hispanic voters in ptember poll by fox saying they supported obamacare. this despite t catholic church opposition to the contraception mandate. so much for the social values. they support proposition 30 in california to raise taxes one upper income californians and to raise the sales tax because hispanics remain the lower vel of the economic ladr and they use government welfare programs at a veryigh rate.t . lou: i welcome this discussion.

now being by the republicans one reforming our immigration laws. but i hope there is not a rush to judgment somehow loses across a vast sea of facts and realities that have been avoided by both political parties. the american people really need to understand what is happening the hispanic community needs to understand what is happening.de the idea that this countryhere should be selecting those of prince and the united states based on their skills or bgo talents, that has to be a tough sell when theug land bridge istt downe south. >> that is white amnesty is very risky because it means that stopping the flow of illegal aliens from that land bridge will be even more difficult. lou:f there i an amnesty, to be the the third in the last 26

years and it will be something to watch.wa >> and we will have it in full, i guaranteeca you. lou: thank you very much. how much should we pay in taxesm to the government? a prominent economist said we should go back to the times of leave it to beaver and pay up. how does 91% feel to you? we take it up in the "chalk

♪ lou: new k lou: "new york times" economist columnist is arguing for a return to the 1950s when incomes in the top tax bracket had to pay a marginalh tax rate, are you ready, 91%. herhere's part of what he wroten

his column in "the times." america in the 1950s made the rich pay their fair share. 91%. it gave workers the right to bargain for decent wages andy benefits. contrary to right wingogan propaganda, anything that disagrees with him, then and now it is pertinent we can do that again.p so parents as nobel winning economist just once to raise taxes 91% and everything will bd fine. these are really something else. in a class by mself, however. back then we had a responsibler government and responsible economist and even responsible a columnists. in 1955 the middle of the decade, federal spending wasov just over 17% of gdp.

17%. now just about 23% of gdp. the good old days. federal deficits were .8%. that's .8% of gdp. now our trillion dollars federal deficit amounts to 7.3% of gdp. back then trade was aa contributor to economic growth for the, economy. reunion $500 million at $4.2 billion adjustedio for inflation, and we're running a trade deficit,it trade deficit $536 billion. $536 million. back then social security made up 6.5%. 6.5%.

of the federal budget. 6.5%. the decayed and medicare didn't exist back then. let's compare that to what we are doing now. a 20% of the budget on social security, and then we throw a 21% more of the federal budget for medicare, medicaid, and another 13% for other social programs, food stamps. so that comes up to a whopping 54% of the budget. 54%. forgot to mention this. it is kind of important, isn't it? back than median family income was about $38,000. $38,000. today it

is $62,000. we will pretend that looks like a two and that looks like a six. we haven't done too well, more than half a centuryin raising a the median income ine this country and that isomething he is right about, we do have to fix that. imagine this, it's got a nobel prize. the unions made up 24% read today that number a rather convenient because a reduction by half of 12% right now.

it tel which were the country is moving in this nostalgia for a 91% tax rate. i want you to know if ever there were evidence the nobel prize doesn't equal genius, i think we can start with the number 91. president obama meeting with the most respected ceos. ceos. and they convince them to take the path of prosperity?

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lou: president obama meeting with heads of the labor unions today saying the president ismmt committed to higher taxes on top earners. tomorrow a group of ceos from ge, wal-mart can afford, chevron will meet with the president and

some of them, members of the campaign to fi fixed the debt limit, one of the most provocative and economic thinkers, the author of the israel test and new addition today. thank you for being here. >> great to be here. cs. i think rationally so. we are faced with economic calamity if our politics don't work here. what would you put the oddat that busy rationality and effectiveness reemerge from washington, d.c., on the fiscal cliff? >> zero. lou: i thought that. >> if we can keep the current tax rates, we would continue to increase government revenue. increasing 26% under the bush tax ras over the last two

years. over t last two years, government revenues have risen 26%, almost a quarter using the buss tax rates. low tax rates bring more revenues, not less revenues. lou: do you interpret all of the drama to be a lack of faith? in front of the growth model that has been demonstrated, as you point out, over the past two years. they are really saying the onomy cannot grow fast enough to support the government. we will not see revenue increase unless we raise taxes. >> that is correct. the pre-verse thing is you don't get growth if you raise tax rates. in california and several other states that topate is

approaching 50% effectively with a 50% top rate, a business have as much incentive to fire somebody to lower-cost as to hire somebody to increase revenues. lou: it a high risk experiment, but nonetheless experiment bringing tax levels above 50%, the nation see califa behave as the canary in the coal mine, if you will, when it comes to economic growth and the ability to support an ever-growing government? >> of course. people are just fleeing california. california is what happens to countries that raise their tax rates. entrepreneurs flea and welfare recipients flee in and you have an unsustainable state of affairs, and that is california

unsustainable. and silicon valley is america's greatest asset, the source of all of our technology and ultimately our military power and potential for growth and we are ttling into over the pale, everybody in silicon view is angling for green subsidies and it ia tragedy. lou: that tragedy compounded by the fact the money that has been spent by this administration i you will on venture money like solyndra has been disastrous. >> they are twisting our venture capitalist, turning people like john doerr into a blithering idiot. john seeking government suidies. he now wantss to support him rather than him to support the country with wonderful new

companies like intel. lou: john is being adaptive to new realities. the primary source of the capital, he is turning to it, i suppose. i want to turn to this book, "the israel test." you take up the issue of the world civilization, importance of israel within it. as a capitalist as well as jewish state. you really believe that israel is that strong, that important in the world's future? >> i certainly do. the american economy is heavily dependent on israel today, partly because of the debauchery of silicon valley, but now israel is a crucial source of new technology for apple. all apples, flash tribes, just bought a new israelicompany to empower its new technologies. microsoft, cisco, johnson and

johnson. the dependent on technologies that come from israel. they're deeply dependent. obama seems to think that the the tips is more important in israel or tukey is more important. israel is the most important technology force in the world next to the united states, and if we keep on our current path israel will be number one. lou: always good to talk with ink that will help? the m" i on the dot.com. >> in october 2009, taliban fighters attacked an outpost with just 53 troops.. eight of our troops lost theirs lives that day. the author wanted answers on why outroops were left unprepared

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who wet. lou: the morning of october 3, 2009, 53 troops stationed atat a combat outpost located at the bottom three steep mountains in afghanistan were attacked by 400 talibanin insurgents, eight of e troops were killed.

in his new book my next guest takes a deeper look at what happened there, and the heroicua actions of our soldiers that morning. joining us now, "abc news" senior correspondent, author of "the new york times" be-selling book "the outpost." great to have you with us. >> is great to see you againce lou: have got to believe a white house correspondent for "abc news," the last thinge people thought was he will be bringing us a story fromor afghanistan. that is remarkable in and of itself. >> it is precisely because those at the white house reporting on the war but doing s as we do in washington from the comfort of the north lawn reporting on the pentagon and the white house and the troops upsurge numbers and how is became a project that's really became attached to.

lou: you focus on this particular battle, you talk with nearly 225 individuals. how long did that take? >> they range from generals, private, widows, couple of insurgents, one of whom i interviewed by skype. it was a big project that every time i thought i wasev done, tak to smitty, i mean ultimaty i just had to stop because there was never going to be a time where i had talked to everybody. lou: you are pursuing one of the toughest explanations, that is how those men can be caught ate that outpost and be the target to be outnumbered so outrageously and incapable of being protected.

this is how it staed. how is in hospita in the hospity newborn son, jack. he was a day-old, out of the corner of my eye i saw the story about the outpost and never heard of combat outpost. coverage along the lines of what would anybody put outpost there? it became a mystery that i needed to solve. why woultd we put our troops in such a vulnerable position? it became what is it like to be so outnumbered in such a vulnerable decision. the stories of these men a women become remarkable and recover the war, but we don't really cover the war as much as wec should. your show might be an exception to that rule, but don't cover it in general as much as we should.

it became so important to me because first of all they are so inspiring. they died because they were doing their jobs, trying to hels a brother provide him with ammunition, save guys pinned down in a humvee. they're down tragic in one sense anc inspirational because thesew really are the best we have to offer in this country and it is great we have these fighting men and women and their families doing this for us even though we are so disconnected. lou: the outpost, we recommend it highly on t website, which you can click on and do all those. including completed transactions.

i didn't know you worked together. >> he was my editor. lou: you are now competing shoulder to oulder. >> i have known him forever, he was a great editor and he was a funny guy. lou: and he tells that he is the greatest. also, you do pretty good yourself. all the best of luck with the great book. fiscal cliff talks are taking republicans and democrats to take the arguments on the road. why do they think that will help make a deal? the "a-team" is

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♪ lou: joining me, lou: joining me now, the "a-team," legal analyst and former clinton advisor, fox newv contributor.ke good to have you all here. have to start with you on this republican recess, as we start to figure what is going on with republicangu party. it seems stephen hayes and a fet other folks are saying they did a great job in her standing up for them it i'm not saying anything, just asking questions this is a status quo position of the republican party?

>> the rank and file out across history -- lou: who is it? >> look, i need a little bit ofk new blood. we do very, very well as we win the government raises and the midterm.e m lou: let me ask a democrat. >> have to find the talent bring them to do washington. lou: no names and don't mess it up too much. does that wor it work the same r the mocrats? >> absolutely because republicans have won five of the last six elections. the never miss an opportunity to miss an opportunity and if they follow the prescriptn for what will happen is they will cosign

themselves with their position. >> i just want to undersnd this, representing both sides that you both want, right? >> i saying the republican party lost, democrats have no mandate and republican don't change they will continue to lose. lou: nice you have to put on me. i said let's examined apollo the possibility of recess. >> we do very well in the midterms. that is because we don't have to do all this. >> nobody taking the blame anybody one. that is just wrong.

i want to hear names on the republican side. where is this great talent? >> jeb bush is a great man. he would do immigration reform, a change in policy, change in personality and a very good man. he is somebody worth having a prominent role in this country. >> i'm looking at the operative level. lou: do you know what in the world republican world stands for which mar? reagan had socl conservatives, religious conservatives, fiscal conservatives. >> a shining city on a hill. he did, we won and will effectivaffectit for the rest o. lou: i'm ting to find the relevant republican party.

>> we need to be stronger against our enemies, we need to have lower taxes. lou: we can't strap you up in mbat gear and tell you to go get them. >> get class warfare come a lot has to do with media and democrats. lou: what do you think about hutchinson, senator hutchinson and senator kyle and senator mccain coming up with republicanth dream act? i think it is excellent. >> i looked through the act, have great caveats, how they will aspire, it is a goodl compromise. >> is a step in the right direction. let's sit down and get this done quickly.l lou: very quickly, please.

>> it is sething that will not go away. it has to be a step in the righo direction. lou: thank you. let's say thanks. and tell you that is it for us tonight, we thank you for being with us. be sure to be with us tomorrow right here.ght good night from new york. she keeps you guessing. it's part of what you love about her. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough forexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis.

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